Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, local business review site Yelp (NYSE: YELP ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Yelp and see what CAPS investors are saying about the stock right now.
Yelp facts
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Headquarters (Founded)
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San Francisco (2004)
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Market Cap
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$1.2 billion
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Industry
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Internet software and services
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Trailing-12-Month Revenue
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$121.3 million
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Management
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Co-Founder/CEO Jeremy Stoppelman
CFO Robert Krolik
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Trailing-12-Month Return on Equity
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(26.2%)
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Cash/Debt
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$123.1 million / $0
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Competitors
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Facebook (NASDAQ: FB )
Google (NASDAQ: GOOG )
Yahoo! (NASDAQ: YHOO )
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Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 85% of the 324 members who have rated Yelp believe the stock will underperform the S&P 500 going forward.
A few months ago, one of those Fools, All-Star BlacknGold, succinctly summed up the Yelp bear case for our community:
Still not [making money], although plenty of people will applaud their first quarterly profit and point to it as a sign of better things to come. Think of it like this: Yelp is miles from making $10 million of net income in a 12 month period. Even if that were ever to happen would the company command a market cap anywhere near $1 billion? This valuation just defies logic.
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